The Indian economy has been going through a turbulent time for quite sometime now. On one side, there has been some tightening measures like implementation of GST, RERA, NCLT, etc., which are monitoring the performance and curbing the malpractices leading to leakages in the economy. On the other hand, the government has provided relaxation in corporate tax rates from 30% to 22%, from 25% to 15% for the new manufacturing companies. Recently, the government has come up with an alternative investment fund of INR 25K crore, primarily to bail out the stalled real estate and associated projects in the country.
The current government in their first and now second term has undertaken a lot of strict and appreciable measures to clean up the bubble formation and have a strong foundation for the long term vision of trillion dollar economy. To take into account the current condition of economy at large and various sectors specifically like real estate and financial markets, following are some of the expectations, which the economy has from the upcoming budget 2020-21:
Lowering of personal income tax rate – On the pretext of boosting demand and consumption in the economy, it is common consensus of lowering the personal income tax rates. This is expected to lead to spending in the economy, and in turn leading to the economic growth.
Industry status to real estate sector – While this has been a long due expectation from the stakeholders, but this time it is the much-needed wish. The status will help the sector to get access to low cost funding, which is now been believed to be the only option for ‘no margin left’ projects to get completed and delivered.
Single window clearance – Again, a long due demand to streamline the approval process and through a single channel/authority, leading to effective implementation and competitive project development.
Removing tax on vacant property – This is leading to extra burden and detrimental for investor to purchase properties in the growth corridors.
Rationalization of stamp duties – It is an expectation to rationalize the stamp duty mechanism in dual ways i.e. rationalization of duty rates and rationalization of duties taken at each step of development and sale of same property, thus leading to very high cost for transaction parties.
Other measures – Apart from the above, some of the other measures been recommended and expected to give boost to the economic growth include increasing the limit for home loan interest outflow, tax rationalization on REIT, and further simplification of land acquisition process.
Overall, it will be a tight rope walk or in other words a fine balancing act to be done in the upcoming budget for the finance minister, with the ultimate goal of achieving economic growth at all cost.
The current government in their first and now second term has undertaken a lot of strict and appreciable measures to clean up the bubble formation and have a strong foundation for the long term vision of trillion dollar economy. To take into account the current condition of economy at large and various sectors specifically like real estate and financial markets, following are some of the expectations, which the economy has from the upcoming budget 2020-21:
Lowering of personal income tax rate – On the pretext of boosting demand and consumption in the economy, it is common consensus of lowering the personal income tax rates. This is expected to lead to spending in the economy, and in turn leading to the economic growth.
Industry status to real estate sector – While this has been a long due expectation from the stakeholders, but this time it is the much-needed wish. The status will help the sector to get access to low cost funding, which is now been believed to be the only option for ‘no margin left’ projects to get completed and delivered.
Single window clearance – Again, a long due demand to streamline the approval process and through a single channel/authority, leading to effective implementation and competitive project development.
Removing tax on vacant property – This is leading to extra burden and detrimental for investor to purchase properties in the growth corridors.
Rationalization of stamp duties – It is an expectation to rationalize the stamp duty mechanism in dual ways i.e. rationalization of duty rates and rationalization of duties taken at each step of development and sale of same property, thus leading to very high cost for transaction parties.
Other measures – Apart from the above, some of the other measures been recommended and expected to give boost to the economic growth include increasing the limit for home loan interest outflow, tax rationalization on REIT, and further simplification of land acquisition process.
Overall, it will be a tight rope walk or in other words a fine balancing act to be done in the upcoming budget for the finance minister, with the ultimate goal of achieving economic growth at all cost.